Carbon Tax vs. Cap-and-Trade: Is One Better Than the Other?
November 11th, 2011
The issue of carbon tax vs cap and trade in relation to the reduction of carbon emission is still widely debated. Liberal minds say the latter is a better option than carbon tax, because companies will just keep paying taxes instead of reducing their carbon emissions. With cap and trade, restrictions will be imposed on the amount of emissions that companies may give off. “Credits” will be assigned for a specific duration, and when emissions are less than what is allotted, they can sell the excess credits to other companies. In time, the companies will be motivated to reduce their emissions and just keep selling the excess; thus, they profit from it. So what do you think? Is one better than the other, or are they just two sides of a single coin?
Entry Filed under: Business